3 bed family-let
Upper St. Stephen Street, Wigan WN6 7DR
Project
Background
& Deal Structure
A 3 bedroom terraced property requiring ideally suited as a family-let and leased to a Registered Provider of social housing on a long-term lease.
The Registered Provider (RP) has expressed interest in this property, and it has passed their checks.
The RP have offered a 5 year lease on this unit, following renovation and having onboarded the property.
Location
Images
Video Walkthrough
Project
Scope of Works
Primarily cosmetic with some minor works, including…
Financials
Acquisition Costs
| Purchase Price Sale agreed | £118,000 |
| Renovation Refurbishment & Conversion Costs Estimate | £25,000 |
| Architect Budget for plans drafting plans and submission to local authority | £0 |
| Furniture Furnishing to provider’s requirements | £0 |
| SDLT Stamp Duty Land Tax | £3,540 UK £5,900 INT |
| Survey RICS Level 2 report | £500 |
| Legals Conveyancing & transaction fees & disbursements | £2,500 |
| Sourcing Sourcing Fee | £6,500 |
| Capital In Total acquisition costs | £156,240 |
Optional Extras
| Project Management Coordinating contract teams | £3,125 |
| Lease Setup Lease negotiations & contract admin with Registered Provider | £1,350 |
Post-Works Refinance
| Gross Development Value Bricks & mortar valuation | £140,000 |
| Uplift Between GDV and original purchase price | £22,000 |
| 1st Charge Lending @75.00% of GDV – recycling funds onto next opportunity | £105,000 |
| Capital Left In Capital remaining in equity post-refinance using mortgage lending | £51,240 |
Registered Provider Lease
| Gross Rent p.a. Negotiated rate for area | £16,200 |
| Mortgage p.a. @6.00% lending @75%LTV | £6,300 |
| Operational Expenses p.a. @0.00% | £0 |
| Management p.a. 0.00% | £0 |
| Net Cash Flow p.a. Pre-tax income | £9,900 |
Capital Growth
Capital Gain
| Capital Value @ Year 10 Year 10 value assumed conservative 3.5% annual growth | £197,484 |
| Mortgage Lending 1st Charge lending redemption | £105,000 |
| Equity Investment Capital Capital returned to equity investor | £51,240 |
| Capital Gain @ Year 10 Cap.value less 1st charge lending & equity investor’s capital | £41,244 |
Investor Returns
Income & Return
| Net Cash Flow PA Annual net income after costs | £9,900 |
| Total Net Lifetime Cash Flow Net income over 10 years | £99,000 |
| Total Lifetime Return on Capital Gain + Total Income (calculated @Year 10) | £140,244 |
Comparables
Availability
Secure Your Next Deal Today…
This deal is available under our standard terms with a 25% downpayment of the Sourcing Fee paid to secure the opportunity, deductible from the final balance due at Exchange of contracts.
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